FAMU president forced to hit ‘pause’ on historic $238 million gift from mystery black donor as wave of skeptics question gift’s legitimacy

One of the most important donations to a historically black college or university is now being withheld after scrutiny by some HBCU alumni and supporters due to the donor’s confidential background.

Investor Gregory Gerami is behind the historic nine-figure donation to Florida A&M University. His $237.75 million gift is one of the most important awards ever received by an HBCU from a single donor, according to the anonymous donor. FAMU edition from May 4.

But the gift raised concerns amongst some alumni and university board members who were unfamiliar with the Gerami name and company. That, combined along with his connection to a botched $1 million donation to one other university, raised more suspicion, a lot in order that a university official called a news conference on Sunday to dispel that skepticism.

In response to the growing confusion, a gathering was held on Thursday throughout the FAMU Foundation Management Board meeting, attended by, amongst others, according to WCTV. The meeting was broadcast via the Zoom platform. FAMU President Larry Robinson confirmed that officials will “pause” the donation “pending additional information as I become aware of it.”

Adding: “It is in our best interest to put this case on hold.”

Gerami, 30, heads Batterson Farms Corp, a hydroponic farming and hemp plastics company that produces bioplastics and fresh organic products. He founded the corporate in 2021.

Although he didn’t share his fortune, he stated that the majority of his wealth was inherited from his adopted family. According to The Sun News, before the CCU deal fell through, school administrators said his 2020 net value was about $600 million and his money assets were nearly $260 million.

Unlike many millionaire entrepreneurs, Gerami has no online presence, so his dealings are shrouded in secrecy. But he said the skepticism and scrutiny he has faced since news of his donation to FAMU became public explains why he doesn’t share much online.

“This is a prime example of why I don’t have an online presence and don’t care about having one” – Gerami said the Tallahassee Democrat. “People take things out of context. They are running away, harming and hurting people with information that is incorrect and simply inappropriate.”

The need to protect his family also motivates him to determine to stay behind the scenes. “I have a family, younger children and I come from a large family,” Gerami told an area portal. “I was born one of eight children and have nine siblings, even in my adopted family. As a parent and a family person, I have to protect my family and their safety is the most important thing.”

FAMU’s gift was funded by the Isaac Batterson Family seventh Trust, which contributed 14 million shares value not less than $239 million and can contribute a further $61 million over 10 years, according to a set schedule.

According to FAMU’s Sunday announcement, these shares were sent a month ago.

“Mr. The $237,750,000 transfer of Gerami shares was received in the same manner as we accepted all other shares donated to the University through FAMU Foundation Inc.” FAMU wrote. “As with any non-monetary gift received, such as cryptocurrency, real estate and stocks, it will be converted to cash and recorded accordingly.”

While Ivy League colleges across the country, such as Harvard, Yale and Princeton, receive massive gifts running into the billions annually, gifts to historically black colleges and universities pale as compared.

In 2019, foundations gave $5.5 billion to Ivy League schools, while 99 HBCUs contributed a complete of about $45 million. Typically, schools like Spelman, Morehouse, Hampton and Howard capture a bigger share of donations to HBCUs annually.

According to a report by ABC 27, the donation is meant for scholarships and programmatic enhancements to the college’s Disability Access and Resource Center, FAMU’s Department of Intercollegiate Athletics, the College of Agriculture and Food Sciences and the School of Nursing.

It also features a general fund to support student success initiatives and special needs of the university on the president’s discretion, according to the local outlet.

As for why Gerami selected FAMU, he said the college’s focus and research opportunities in hemp production align along with his company’s goals.

While the colleges’ statements suggest the validity of the agreement, questions remain about its transparency, that are compounded by the consequence of its latest commitment to one other university.

According to The Sun News.in 2020. Gerami was an anonymous donor who made a $95 million donation to Coastal Carolina University that fell apart inside 4 months of the announcement. Like FAMU, Gerami has no affiliation with CCU, but was reportedly dating someone from the university on the time of the donation.

The CCU award was announced in July 2020. In the next months, Gerami and the college were at odds after university officials expressed uncertainty about whether Gerami had the resources to finance the donation.

Gerami also claimed that a CCU official made racist and offensive statements towards him before his relationship with the college completely disintegrated. During negotiations with CCU, Gerami also considered making donations to other HBCUs, including FAMU.

Board vice president and FAMU alumnus Deveron Gibbons told the Tallahassee Democrats he was unaware of the donation to a Florida HBCU until the college announced it publicly throughout the commencement ceremony, where Gerami spoke.

“As Vice Chairman of the Board of Trustees, I have a responsibility to protect the integrity of the university I value, but I have deep concerns that this process is moving too quickly to accept a gift without appropriate oversight.”—Gibbons he said in a press release to Democrats.

Gibbons called for extraordinary board meeting which can happen on May 15.

“We are fully aware of the skepticism that sometimes accompanies such a large gift,” FAMU said in its statement on Sunday. “As expected, some people in the public are and will continue to conduct research into Mr. Gerami. We would like to inform you that FAMU has exercised due diligence in this matter. Additionally, Mr. Gerami has conducted and continues to conduct due diligence on matters that have occurred and are occurring at FAMU.”

Another HBCU alum wrote a viral article with a provocative headline questioning the validity of the donation. Jerell Blakeley, a graduate of Howard University, published a column in: Education News Flash’s HBCU Digest on May 6 under the title “For the love of money, was FAMU deceived?”

Blakeley couldn’t come to terms with the low status of the Gerami, which seems to be at odds with the more famous donors.

“It’s not like Mackenzie Scott and the hundreds of thousands she gave to a number of HBCUs. People know who she is, where her wealth comes from, and the way HBCUs have grow to be a focus for her donations. Robert Smith is the richest black man in America, and since of one gift, Gerami, as a virtual unknown company he founded three years ago, outweighs Smith’s donations?

Blakeley called on all university management to resign “if this turns out to be a fraud”.

Gerami, nonetheless, stays confused by the entire ordeal.

“The stock has been held by the university for over a month now, so I don’t know where there would be any confusion or skepticism since the company is already in the university’s financial account,” Gerami told the Tallahassee Democrat.